PHNOM PENH: Modern cities in developing countries are transforming traditional night economies into key commercial drivers, fuelling micro-businesses and spurring growth in the tourism sector.
From the bustling northern capital of Hanoi and the southern metropolis of Ho Chi Minh City in Vietnam to Cambodia’s Phnom Penh and Siem Reap and Laos’ scenic Luang Prabang, urban planners are re-creating night-time businesses into major economic hubs.
This rebranding exercise marks a significant shift in urban planning across the Mekong region. A transformation from mostly informal commercial activities to more organised urban-centred business models injects economic vibrancy into their bustling cities.
"The night economy has become much more than just night markets or evening entertainment. Across South-East Asia, governments are increasingly looking at it as an important driver of economic activity, tourism growth, job creation and urban development,” Pacific Asia Travel Association Cambodia Chapter President Dr Thourn Sinan explained.
South-East Asia’s rising economic powerhouse and tourism magnet, Vietnam, is integrating after-hours economies into urban development plans to benefit micro-businesses, creative services and the cultural industry.
Last week, Ho Chi Minh City, with nearly 10 million people, announced ambitious plans to unlock the potential of the sunset economy by taking advantage of its popular street food culture and entertainment industry.
Meanwhile, Hanoi announced its Night-Time Economic Development Plan for 2026-2030 in May, with a vision to 2045, where the city targets the sector to contribute around five per cent of its gross regional domestic product by 2030, reported Vietnam News.
The night-time economy offers an ideal platform for the commercialisation of cultural products and services. Music, cinema, performing arts, creative design, handicrafts, fashion, cuisine and cultural tourism can all benefit from the evening economy, said the English daily.
The Mekong region’s young demography, the rise of "digital nomads” that add new lifestyle and modern technologies are beginning to shape cities.
"What makes the night economy important is that it allows a city to continue generating economic activity long after normal business hours," said Sinan.
"Given the current global economic uncertainty, slower growth in many markets, rising business costs, and changing travel patterns, governments are looking for practical ways to stimulate economic activity without relying solely on large-scale investments.”
In Phnom Penh, known for its tourist charm in the Mekong belt, the government initiated the weekend "Phnom Penh Walk Street” along the famous Tonle Sap River.
Every Saturday and Sunday, about 80,000 to 100,000 visitors throng the street, also known as "Chaktomuk Walk Street”. The new project has generated nearly 1,400 jobs, including about 1,000 general vendors and 400 vendors in organised stalls, according to the local municipality, reported online portal Fresh News.
Sinan said in many countries, including Cambodia, the night economy is largely powered by small entrepreneurs, mainly food vendors, artisans, performers and family-run businesses that bring life and character to a destination.
"Their contribution to the economy goes far beyond the sales they make each evening. They support local farmers, suppliers, transport operators and service providers.
"The income they earn is spent within local communities, creating a multiplier effect that benefits many other sectors,” he said. - Bernama
